TTJ Holdings

This was pretty obvious, low order book and earnings going down as expected. Next will be dividend cut.

TTJ probably won't get much gov contract as competition will be stiff and margins low.

Besides this will play into boss plan let the share price fall to collect more

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(09-03-2017, 10:47 AM)BlueKelah Wrote: This was pretty obvious, low order book and earnings going down as expected. Next will be dividend cut.

TTJ probably won't get much gov contract as competition will be stiff and margins low.

Besides this will play into boss plan let the share price fall to collect more

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Indeed. With the humongus cash hoard, the roe is pathetic.
Enduring shareholders are likely to expect lower earning (by nature or by design) and be prepared for the worst case (the low ball!!)
The low ball is happening alot that little wonder the trust in sg listed companies is low.

Boss Teo already has 85%... so another 5.1% more, he will exceed 90% to make GO...
it's a waiting game sir!

These days I try to avoid stocks whose boss holds above 80%. It is simply not realistic to expect them to make a generous, genuine offer. Minority shareholders will always lose out.

This business does not have much recurring income. It depends on the boss ability to secure profitable contracts. If projects dry up, then the orderbook can be depleted quite fast, now only SGD 50+ millions. I usually go for business with a very visible and sustainable maintenance income as it is recurring. Those that are once off, contract base are more risky. TTJ seems to be able to secure ONLY good projects. Wondering whether that can last.

(10-03-2017, 08:02 AM)luckystar Wrote: This business does not have much recurring income. It depends on the boss ability to secure profitable contracts. If projects dry up, then the orderbook can be depleted quite fast, now only SGD 50+ millions. I usually go for business with a very visible and sustainable maintenance income as it is recurring. Those that are once off, contract base are more risky. TTJ seems to be able to secure ONLY good projects. Wondering whether that can last.

Shouldn't the sensible business ONLY secure good projects (in term of returns and NOT just for good track-record sake)?
The industry has poor returns due to the past over-aggresive bids of projects with low or no buffer for errors/ bad luck.
Unfortunately this time, the bad luck really came home with gov cap of cheap workers quantity and raise in workers cost.

Would you rather own ttj or yongnam?
For me, at the moment, the answer is looking out for other companies in other industry until the foolish aggresive bids panned out! Yongnam ceo still sounds rather bullish and probably not learning the lessons yet.

<used to be my core>

(10-03-2017, 03:48 PM)ksir Wrote:

(10-03-2017, 08:02 AM)luckystar Wrote: This business does not have much recurring income. It depends on the boss ability to secure profitable contracts. If projects dry up, then the orderbook can be depleted quite fast, now only SGD 50+ millions. I usually go for business with a very visible and sustainable maintenance income as it is recurring. Those that are once off, contract base are more risky. TTJ seems to be able to secure ONLY good projects. Wondering whether that can last.

Shouldn't the sensible business ONLY secure good projects (in term of returns and NOT just for good track-record sake)?
The industry has poor returns due to the past over-aggresive bids of projects with low or no buffer for errors/ bad luck.
Unfortunately this time, the bad luck really came home with gov cap of cheap workers quantity and raise in workers cost.

Would you rather own ttj or yongnam?
For me, at the moment, the answer is looking out for other companies in other industry until the foolish aggresive bids panned out! Yongnam ceo still sounds rather bullish and probably not learning the lessons yet.

<used to be my core>

I don't like Yongnam and what they do. I like TTJ, but I question for how long can one keeps getting ONLY good projects. What if good, profitable projects run out, and the company orderbook shrinks to zero? I dont know whether TTJ is nimble enough to find another source of revenue that pays good margin to supplement its core business. Just wondering.

When one has invested in a good stock, we hope good fortune runs forever. Even for myself, I tend to be biased and look at glass as half full. But eventually, some have failed me, like Rotary, when there was not much more work left in Jurong Island, it may have to settle for lesser contracts.

quite frankly, if they wanted to privatise the company, they can do it easily with the cash on their balance sheet. they certainly have more than sufficient to do so if LBO is on the table. by holding on to almost 85% of the shares (excluding what other management might hold), there is no urgency for them to push up the share price as they would certainly want to do it at the cheapest cost.

separately, if privatisation is not on the table, then they need to decide how to improve liquidity by disposing his vendor shares to the public or strategic investor, etc.

TTJ buys property & equipment in Johor for S$12.25mil:

http://infopub.sgx.com/FileOpen/TTJ%20An...eID=451917

RATIONALE OF THE PROPOSED ACQUISITIONS

The Proposed Acquisitions will enable the Group to enjoy savings in terms of labour costs. In addition,
as disclosed in its FY2016 Annual Report, the Company had obtained in-principle acceptance (IPA)
from the Building and Construction Authority of Singapore and various agencies for the supply of
steel PPVC systems. PPVC is a construction method that the Singapore government is supporting to
raise construction productivity. Prefabrication of PPVC units require large factory-controlled
environment and the Proposed Acquisitions will allow the Group to expand its manufacturing
capabilities and take on more large-scale projects.